The answer is:

It depends…

Not what you wanted to hear, right? But there are many factors that can affect whether or not you should try to get your current home sold before purchasing a new one. If you have no money for a down payment (let’s face it unless you qualify for some of the various down payment assistance programs out there, you need money for your down payment and closing costs these days) and you have some equity in your home, you may need to sell your home in order to get the money you need for the down payment on a new home.

You also need to think about whether or not you can afford two mortgages. Although you may have enough money saved to cover the down payment, how long can you swing two mortgages? If you do end up selling your home before you find a new one, you may consider renting your first home to cover the mortgage. If you had hopes of getting into purchasing properties, this may be the perfect segue. Again, another example of something you should consider before rushing out to purchase your next home.

You may be looking specifically for a “fixer-upper”. If this is the case and you have the funds available, maybe it is a good idea to keep your current home while renovations in the new one take place. We all know renovations can take a toll on you and living in the middle of it can really affect your sense of balance in life. Take it from me, if I could do it over again, I’d have rented an apartment or something until the renovations in my house were complete. It can be overwhelming and take you longer to finish the renovation in the long run.

Depending on your market, it may be very slow. As a result, this may be the perfect time for you to find a deal on your next home. While you may find the perfect house at the perfect price, you still have to consider that your home may not sell as quickly. Again, can you handle the extra payments?

There are likely dozens of other reasons why it may or may not be a good idea for you to sell your home before you purchase a new one; but in reality, the biggest factor will most likely come down to money…

Do you need equity from your current home to get into a new one? Can you afford to carry both for an undetermined amount of time?

Please feel free to contact me with any questions you may have about the area or if you'd like me to send you the current active listings in the area. I look forward to hearing from you!

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Call me at 317-889-1111 or email me at chandasellsindy@sbcglobal.net